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- The debt ceiling sends crypto moving
The debt ceiling sends crypto moving
and a look back at the evolution of the crypto market
Austin Diamond
May 29, 2023
Welcome back to The Benchmark, a weekly newsletter read by thousands brought to you by Alongside, where we cover the latest crypto news, interview builders in the space, and dive into new projects.
Market Check-in
This Week in Crypto
Raising the U.S. debt ceiling
President Joe Biden and House Speaker Kevin McCarthy have reached an agreement in principle to raise the debt ceiling and avoid a government default, which sent crypto prices up. While the deal is a compromise and won't satisfy everyone, leaders from both parties believe they can secure enough bipartisan support for the legislation. The agreement includes raising the debt limit for two years and capping nondefense spending. It also introduces temporary increases in work requirements for certain elderly food stamp recipients. The text of the bill is expected to be available soon, and McCarthy plans to hold a vote in the House next week. the Treasury Secretary has set June 5 as the deadline for avoiding a default. Senate Democrats have been advised to be prepared for votes at the end of the week or over the weekend.
How Crypto can help secure AI
Both the fields of cryptocurrency and AI have made significant moves in becoming mainstream. There has even been a perceived tension between the decentralized nature of crypto and the centralizing forces of AI. There is an argument for combining the two, as the skills and approaches from the security and crypto community can be applied to AI to unlock useful applications and mitigate risks. Eliezer Yudkowsky, a prominent figure in AI safety, has expressed concerns about the development of Artificial General Intelligence (AGI) and its potential dangers. He encourages individuals with a strong security mindset to contribute to AI alignment efforts. The rapid progress in AI and the need for safety measures have brought attention to the potential role of the crypto and security community in addressing these challenges.
Asia nations make moves in crypto regulation.
Regulators in Asia have recently implemented or proposed updates to regulations governing digital assets. In Japan, stricter Anti-Money Laundering measures will be enforced starting from June 1. This includes the implementation of the "Travel Rule," which requires financial institutions processing crypto transfers over $3,000 to provide customer information to the recipient exchange or institution. South Korea has passed new laws mandating officials to report their holdings of cryptocurrencies, while Hong Kong's Securities and Futures Commission (SFC) will allow licensed platforms to serve retail investors if they comply with proposed guidelines. The Beijing municipal government in China has released a white paper acknowledging the importance of Web3 technology and expressing support for its growth through policy and technological advancements.
More reading from this week
1/ Huobi HK offers crypto trading in Hong Kong to retail
2/ The majority of United States-based crypto holders who were active during the giddy highs of the 2021 bull market stuck around for the 2022 bear trend.
3/ Ledger drama sends Trezor sales flying
What did the top 10 look like for the last 10 years in Crypto?
How long have you been in Crypto? Since 2013? 2017? 2022? Do you remember what the top 10 looked like each year? Probably not. We took a snapshot of each year from 2013 to Today. Let's refresh your memory
Top 10 in May 2013 Who remembers PPCoin? Probably not?
Top 10 in May 2014 Dogecoin enters the chat!
Top 10 in May 2015 Ripple and Litecoin settling in for second and third.
Top 10 in May 2016 Ethereum enters the chat!
Top 10 in May 2017 Ripple in second above Ethereum!
Top 10 in May 2018 Hello Bitcoin Cash
Top 10 in 2019 BNB makes an appearance!
Top 10 in 2020 So many Bitcoins.. SV.. Cash.. etc..
Top 10 in 2021 BNB settles in third.
Top 10 in 2022 More and more stablecoins, and Solana enters the chat.
Top 10 Today Polygon makes an appearance!
The takeaway? Crypto assets is a space that is fast changing and highly volatile. What is hot today likely won't be next year, and even less likely 5 years from now.
Our answer? Diversification with indexes.
This is why $AMKT, the Crypto Market Index, exists today. $AMKT tracks the top 25 assets in the crypto space, and is rebalanced monthly and reconstituted quarterly. So, $AMKT continues to track the market in a single token, and changes composition over time to match.
Learn more about $AMKT, the Crypto Market Index, here.
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DISCLAIMER: This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.